Mark Cuban thinks Wall Street stands no chance against digital natives

Published at: Feb. 1, 2021

Entrepreneur and Dallas Mavericks owner Mark Cuban has weighed in on the recent clash between Wall Street and the r/Wallstreetbets Reddit community.

In a Jan. 31 blog post, Cuban suggested that the old-school investment community is currently taking a kicking from what he describes as the “Store of Value Generation.”

These millennials have developed a greater understanding of the value of digital assets, having been brought up in a world where music was more often shared as a digital file than a physical object.

Blockchain technology, nonfungible tokens and smart contracts now allow any asset which can be represented digitally to act as a store of value, with provable scarcity and without many of the downsides of physical collectibles:

“This generation knows that a smart contract and the digital good it reflects or a CryptoAsset are a better investment than old school see, touch or feel uses.”

Cuban goes on to point out that a stock is just another digital store of value, and that the new generation has simply found and taken advantage of the inefficiencies in the legacy stock market system.

They have realized that by working together they minimize Wall Street’s power, and exposed the hypocrisy of hedge funds and brokerages putting out buy notes to millions of clients while crying foul when a subreddit does the same thing:

“Fat and happy Wall Street has become slow, stale and set in their ways, which makes them an easier than anyone would expect target.”

This year, Cuban has come out as a bigger crypto follower than he has previously let on, even recently minting some limited edition NFTs on Rarible.

Tags
Related Posts
Robinhood and GameStop proved we need a new financial system
King Midas is most famously remembered through the fable we tell our kids that the king could turn everything he touched into gold. At first, it was a great idea that his greed turned even food into gold, leaving him wealthy but unable to live. Robinhood’s CEO and its board had the impossible King Midas dilemma this week: deciding whether to side with their customers and let them make over $15 billion in profits or halting trading and allow only the sale of GameStop (GME) to enable the money-hungry shorts to cover their position at lower prices and avoid massive …
Decentralization / Feb. 7, 2021
Robinhood reportedly shelves IPO plans in wake of GameStop PR disaster
Trading app Robinhood may have put its plans for an initial public offering on hold after public opinion turned against the company in the wake of its response to the short squeeze on GameStop (GME). According to Fox Business Network’s Charles Gasparino, sources inside Robinhood say the company’s only focus is surviving the fallout from the drama it currently finds itself engulfed in, and will pause its plans for an IPO launch for now. SCOOP: Ppl inside @RobinhoodApp tell @FoxBusiness plans for an IPO are on hold to focus on surviving the current drama over trading of stocks and settlement …
Technology / Feb. 2, 2021
Hundreds of thousands watch as AOC takes on Robinhood on Twitch
Hundreds of thousands tuned in to a Twitch stream today as U.S. congresswoman Alexandra Ocasio-Cortez discussed Robinhood’s controversial decision to suspend trading in GameStop after the short squeeze engineered by r/WallStreetBets. Hours earlier, Ocasio-Cortez, who sits on the House Financial Services Committee, slammed Robinhood for favoring the interests of the ultra wealthy at the expense of ordinary investors. “This is unacceptable. We now need to know more about @RobinhoodApp ’s decision to block retail investors from purchasing stock while hedge funds are freely able to trade the stock as they see fit.” The live stream, hosted on Ocasio-Cortez’s personal Twitch …
Decentralization / Jan. 29, 2021
GameStop short squeeze highlights the power of decentralization
The success of the GameStop short squeeze in pumping the price above $370— and the reaction from centralized authorities and markets to it — has highlighted the need for decentralized finance, according to some in the crypto industry. The stock, which was trading at less than $20 per share earlier this month, was deemed by members of the r/WallStreetBets subreddit to be under attack by a hedge fund which had disclosed a large short position in the stock. As a result of the pump coordinated on Reddit and executed by individual traders using platforms like TD Ameritrade and Robinhood, hedge …
Decentralization / Jan. 28, 2021
Morgan Stanley launches cryptocurrency research team
Morgan Stanley, one of the largest banks in the United States, is setting up a new crypto-focused research division. The Wall Street megabank has appointed Sheena Shah as lead cryptocurrency analyst for its dedicated cryptocurrency research team, Bloomberg reported on Monday. Shah worked as Morgan Stanley’s lead currency strategist covering G10 currencies for more than eight years and contributed to the bank’s crypto-related research efforts. In the new role, Shah will reportedly focus on analyzing the impact of cryptocurrencies on equities and fixed-income investments such as treasury and corporate bonds. Announcing the news in a memo to staff, Morgan Stanley’s …
Technology / Sept. 15, 2021